GST Registration Restored: Taxpayer Must File Pending Returns, Pay Dues, and Comply with Specific Conditions Within 45 Days

The HC allowed the GST registration cancellation challenge, directing the petitioner to file pending returns and pay tax dues within 45 days without using unutilized ITC. The court mandated specific compliance conditions for registration revival, including proper tax and return submissions. The respondent was instructed to update the GST portal to facilitate the process, with registration restoration contingent on meeting all specified requirements.

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Issues:
Challenge of GST registration cancellation and seeking revocation due to inability to file returns on time.

Analysis:
The petitioner challenged the cancellation of their GST registration, citing inability to file returns on time due to ill-health. The petitioner sought revocation of the cancellation order. The court referred to a previous judgment in Suguna Cutpiece case and decided in favor of the petitioner, issuing specific directions for compliance.

The court directed the petitioner to file returns for the period before the cancellation, along with tax dues, interest, and belated filing fees within 45 days of the order. Importantly, the court specified that the payment should not be made from any unutilized Input Tax Credit (ITC) of the petitioner. Any unutilized ITC must be approved by a competent officer before utilization for future tax liabilities.

Furthermore, the petitioner was instructed to pay GST and file returns for the period after the registration cancellation, declaring the correct value of supplies. Any earned ITC could only be utilized after approval by the respondent or a competent authority. Upon payment of tax, penalty, and return uploads, the registration would be revived immediately.

The court also directed the respondent to make necessary changes in the GST Web portal to facilitate return filing and payment processes for the petitioner within 30 days. The restoration of GST registration was subject to fulfilling all the specified conditions. The writ petition was disposed of with no costs awarded, and connected miscellaneous petitions were closed accordingly.

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